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M.P BIRLA INSTITUTE OF MANAGEMENT

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INTERNSHIP REPORT

An organizational study

At

MOTHER DAIRY,

KOLKATA

Submitted in partial fulfillment of the requirement of the Bangalore University for

the forward of degree in

Master of Business AdministrationSubmitted by

Mr. Anuranjan Thakur

Reg. No.10XQCMA014

Under the guidance of Prof.Sumithra Sreenath

M.P. Birla Institute of Management

Associate Bharatiya Vidya Bhavan

No. 43, Race Course Road,

Bangalore 1. August, 2011


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Student Declaration

I, Anuranjan Thakur (10XQCMA014) hereby declare that the internship report, an

organizational study conducted at Mother Dairy, Kolkata submitted in partial

fulfillment of the requirements of the Bangalore University for the Award of degree in

Master of Business Administration is a bonafide work carried out by me under the

guidance of Prof.Sumithra Sreenath, MPBIM, Bangalore.

This report has not been submitted earlier to any other university or institution for the

award of any degree/diploma.

The contents of this report are based on the data collected by me at Mother Dairy,

Kolkata under the guidance of Mr. K. P. Boral(In-charge Personal Department)

Place: Kolkata Anuranjan Thakur

Date: 18/ 08/2011 Reg. No. 10XQCMA014


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ACKNOWLEDGEMENT

I have this opportunity to acknowledge the invaluable assistance, support and guidance

extended by each and everyone who has contributed towards the successful completion

of this project report.

I would first thanks God almighty for giving me the wisdom and strength to undertake

this project.

I further express my deep sense of gratitude to Mr. Dhiman Sen, without whose help

and support this project would not have been possible.

I also express my deep gratitude to the management of Mother Dairy and

Mr.K.P.Boral(In-charge Personal Department) for the permission, support and for the

encouragement which they have provided for the successful completion this project.

I would like to thank Prof.Sumithra Sreenath my internal guide for giving his

graceful assistance and guidance in completion of this report.

At last I would thank my parents and all my friends for their support and motivation

throughout the project.

Date: 18/08/2011 Anuranjan Thakur

Place: Bangalore Reg. No: 10XQCMA014


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TABLE OF CONTENTS

CHAPTER No. PARTICULARS PAGE

NO.

1. Introduction1.1Background of the study1.2Industry Profile1.3Company Profile1.4Vision, Mission and Objectives

5-16

2. Organization Structure

2.1 Organization heirarchy2.2 Management Relationship

17-19

3. Functional Areas3.1 Finance Department3.2 Marketing Department3.3 Production Department3.4 HR Department

20-42

4. SWOT Analysis5.1 Strength and Weakness5.2 Opportunities and Threats5.3 Problem Identifications and solutions

43-74

5. Observations, Suggestions and Conclusion6.1 Major findings6.2 Suggestions6.3 Conclusion

75-79

6. Annexure(Financial statements)Questionnarie

Bibliography

80-84


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INTRODUCTION


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1.1 Background of study

The Internship Study was conducted in MOTHER DAIRY KOLKATA from

18/07/2011 to 18/08/2011. The need to undergo this Internship Study is to fulfill the

requirement of MBA degree course of Bangalore University. The training was

undertaken during July and August and the main purpose was to know the practical

implication and policies of the company, the theoretical aspects that we study during

our course can be observed how exactly they are put into practice.

The main objective of undergoing this training is to get the practical exposure of the

functional departments of the organization such as Marketing, HR, Finance,

Production departments and also to study the inventory, cash and receivable at

MOTHER DAIRY KOLKATA. During training I studied how the theoreticalknowledge is practically applied in various departments. The internship undergone by

me has helped me in getting practical exposure to the various departments of Mother

dairy.

The report traces the growth and development of the company and gives the selected

outline about the services adopted by the company. The report also explains the

values and gives a brief about the quality and financial aspects of MOTHER DAIRY

KOLKATA.

The study is to prepare the report on the internship training and submit the detailed

and comprehensive report. This will help the company to assess its strength,

weakness to take necessary action to improve the future growth.


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OBJECTIVE OF THE STUDY

To understand the function of each department namely Personal (Human

Rsource), Finance, Marketing and Production Department.

To study working of various department of the organization in general.

To identify strength and weakness of the organization.

To identifying the effect of competition.

To understand the concept of Working capital management.

To suggest ways for better management and control of working capital at the

concern.

1.2 INDUSTRY PROFILE

Fast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) are

products that are sold quickly and at relatively low cost.Examples include non-durable

goods such assoft drinks,toiletries,and grocery items. Though the absolute profit made

on FMCG products is relatively small, they generally sell in large quantities, so the

cumulative profit on such products can be large.

The term FMCG refers to those retail goods that are generally replaced or fully used up

over a short period of days, weeks, or months, and within one year. This contrasts with

durable goods or major appliances such as kitchen appliances, which are generally

replaced over a period of several years.
http://en.wikipedia.org/wiki/Low_costhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Toiletrieshttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Toiletrieshttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Low_cost


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FMCGs have a short shelf life, either as a result of high consumer demand or because the

product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables, dairy

products and baked goodsare highly perishable. Other goods such as alcohol, toiletries,

pre-packaged foods, soft drinks and cleaning products have high turnover rates.

The following are the main characteristics of FMCGs:

From the consumers' perspective:

Frequent purchase

Low involvement (little or no effort to choose the item -- products with strong

brand loyalty are exceptions to this rule)

Low price

From the marketers' angle:

High volumes

Lowcontribution margins Extensivedistribution networks

Highstock turnover

FMCG Products and Categories

Personal Care,Oral Care,Hair Care,Skin Care,Personal Wash (soaps);

Cosmetics and toiletries,deodorants, perfumes,feminine hygiene,paper products;Household carefabric wash including laundry soaps and synthetic detergents;household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners,

air fresheners,insecticides and mosquito repellents,metal polish and furniturepolish;

FMCG IN 2006

The performance of the industry was inconsistent in terms of sales and growth for over 4years. The investors in the sector were not gainers at par with other booming sectors.
http://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Stock_turnoverhttp://www.naukrihub.com/india/fmcg/overview/personal-care/http://www.naukrihub.com/india/fmcg/overview/oral-care/http://www.naukrihub.com/india/fmcg/overview/hair-care/http://www.naukrihub.com/india/fmcg/overview/skin-care/http://www.naukrihub.com/india/fmcg/overview/soaps/http://www.naukrihub.com/india/fmcg/overview/cosmetics-toiletries/http://www.naukrihub.com/india/fmcg/overview/deodorants-perfumes/http://www.naukrihub.com/india/fmcg/overview/feminine-hygene/http://www.naukrihub.com/india/fmcg/overview/paper-products/http://www.naukrihub.com/india/fmcg/overview/household-care/http://www.naukrihub.com/india/fmcg/overview/fabric-wash/http://www.naukrihub.com/india/fmcg/overview/fabric-wash/http://www.naukrihub.com/india/fmcg/overview/air-fresheners/http://www.naukrihub.com/india/fmcg/overview/mosquito-repellents/http://www.naukrihub.com/india/fmcg/overview/furniture-polish/http://www.naukrihub.com/india/fmcg/overview/furniture-polish/http://www.naukrihub.com/india/fmcg/overview/furniture-polish/http://www.naukrihub.com/india/fmcg/overview/furniture-polish/http://www.naukrihub.com/india/fmcg/overview/mosquito-repellents/http://www.naukrihub.com/india/fmcg/overview/air-fresheners/http://www.naukrihub.com/india/fmcg/overview/fabric-wash/http://www.naukrihub.com/india/fmcg/overview/fabric-wash/http://www.naukrihub.com/india/fmcg/overview/household-care/http://www.naukrihub.com/india/fmcg/overview/paper-products/http://www.naukrihub.com/india/fmcg/overview/feminine-hygene/http://www.naukrihub.com/india/fmcg/overview/deodorants-perfumes/http://www.naukrihub.com/india/fmcg/overview/cosmetics-toiletries/http://www.naukrihub.com/india/fmcg/overview/soaps/http://www.naukrihub.com/india/fmcg/overview/skin-care/http://www.naukrihub.com/india/fmcg/overview/hair-care/http://www.naukrihub.com/india/fmcg/overview/oral-care/http://www.naukrihub.com/india/fmcg/overview/personal-care/http://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Contribution_margin


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After two years of sinking performance of FMCG sector, the year 2005 has witnessed theFMCGs demand growing. Strong growth was seen across various segments in FY06.With the rise in disposable income and the economy in good health, the urban consumerscontinued with their shopping spree.Food and health beverages,branded flour, branded sugarcane,bakery products such as

bread, biscuits, etc.,milk and dairy products,beverages such as tea,coffee,juices,bottled

water etc, snack food, chocolates, etc.

Frequently replaced electronic products, such as audio equipments, digital cameras,

Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc.

coming under the category of White Goods in FMCG;

FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.

60,000 crores. FMCG sector generates 5% of total factory employment in the country andis creating employment for three million people, especially in small towns and rural

India.

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector

in the economy. A well-established distribution network, intense competition between the

organized and unorganized segments characterizes the sector. FMCG Sector is expected

to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-

year period. It has been estimated that FMCG sector will rise from around Rs 56,500

crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming,

female hygiene, and the chocolates and confectionery categories are estimated to be the

fastest growing segments, says an HSBC report. Though the sector witnessed a slower

growth in 2002-2004, it has been able to make a fine recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last

quarter. An estimated double-digit growth over the next few years shows that the good

times are likely to continue.

With the presence of 12.2% of the world population in the villages of India, the Indian

rural FMCG market is something no one can overlook. Increased focus on farm sector

will boost rural incomes, hence providing better growth prospects to the FMCG
http://www.naukrihub.com/india/fmcg/overview/food-beverages/http://www.naukrihub.com/india/fmcg/overview/branded-flour/http://www.naukrihub.com/india/fmcg/overview/branded-sugar/http://www.naukrihub.com/india/fmcg/overview/bakery-products/http://www.naukrihub.com/india/fmcg/overview/bakery-products/http://www.naukrihub.com/india/fmcg/overview/milk-dairy/http://www.naukrihub.com/india/fmcg/overview/tea/http://www.naukrihub.com/india/fmcg/overview/coffee/http://www.naukrihub.com/india/fmcg/overview/fruit-juice/http://www.naukrihub.com/india/fmcg/overview/bottled-water/http://www.naukrihub.com/india/fmcg/overview/bottled-water/http://www.naukrihub.com/india/fmcg/overview/snacks/http://www.naukrihub.com/india/fmcg/overview/chocolate/http://www.naukrihub.com/india/fmcg/overview/consumer-electronics/http://www.naukrihub.com/india/fmcg/overview/audio-equipments/http://www.naukrihub.com/india/fmcg/overview/laptop/http://www.naukrihub.com/india/fmcg/overview/color-televisions/http://www.naukrihub.com/india/fmcg/overview/refrigerator/http://www.naukrihub.com/india/fmcg/overview/washing-machines/http://www.naukrihub.com/india/fmcg/overview/white-goods/http://www.naukrihub.com/india/fmcg/overview/white-goods/http://www.naukrihub.com/india/fmcg/overview/washing-machines/http://www.naukrihub.com/india/fmcg/overview/refrigerator/http://www.naukrihub.com/india/fmcg/overview/color-televisions/http://www.naukrihub.com/india/fmcg/overview/laptop/http://www.naukrihub.com/india/fmcg/overview/audio-equipments/http://www.naukrihub.com/india/fmcg/overview/consumer-electronics/http://www.naukrihub.com/india/fmcg/overview/chocolate/http://www.naukrihub.com/india/fmcg/overview/snacks/http://www.naukrihub.com/india/fmcg/overview/bottled-water/http://www.naukrihub.com/india/fmcg/overview/bottled-water/http://www.naukrihub.com/india/fmcg/overview/fruit-juice/http://www.naukrihub.com/india/fmcg/overview/coffee/http://www.naukrihub.com/india/fmcg/overview/tea/http://www.naukrihub.com/india/fmcg/overview/milk-dairy/http://www.naukrihub.com/india/fmcg/overview/bakery-products/http://www.naukrihub.com/india/fmcg/overview/bakery-products/http://www.naukrihub.com/india/fmcg/overview/branded-sugar/http://www.naukrihub.com/india/fmcg/overview/branded-flour/http://www.naukrihub.com/india/fmcg/overview/food-beverages/


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companies. Better infrastructure facilities will improve their supply chain. FMCG sector

is also likely to benefit from growing demand in the market. Because of the low per

capita consumption for almost all the products in the country, FMCG companies have

immense possibilities for growth. And if the companies are able to change the mindset of

the consumers, i.e. if they are able to take the consumers to branded products and offer

new generation products, they would be able to generate higher growth in the near future.

It is expected that the rural income will rise in 2007, boosting purchasing power in the

countryside. However, the demand in urban areas would be the key growth driver over

the long term. Also, increase in the urban population, along with increase in income

levels and the availability of new categories, would help the urban areas maintain their

position in terms of consumption. At present, urban India accounts for 66% of total

FMCG consumption, with rural India accounting for the remaining 34%. However, rural

India accounts for more than 40% consumption in major FMCG categories such as

personal care, fabric care, and hot beverages. In urban areas, home and personal care

category, including skin care, household care and feminine hygiene, will keep growing at

relatively attractive rates. Within the foods segment, it is estimated that processed foods,

bakery, and dairy are long-term growth categories in both rural and urban areas.

Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector:

Availability of raw materials: Because of the diverse agro-climatic conditions in

India, there is a large raw material base suitable for food processing industries.

India is the largest producer of livestock, milk, sugarcane, coconut, spices and

cashew and is the second largest producer of rice, wheat and fruits &vegetables.

India also produces caustic soda and soda ash, which are required for the

production of soaps and detergents. The availability of these raw materials gives

India the location advantage.

Labor cost comparison


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Low cost labor gives India a competitive advantage. India's labor cost is amongst the

lowest in the world, after China & Indonesia. Low labor costs give the advantage of low

cost of production. Many MNC's have established their plants in India to outsource for

domestic and export markets.

Presence across value chain: Indian companies have their presence across the value

chain of FMCG sector, right from the supply of raw materials to packaged goods in the

food-processing sector. This brings India a more cost competitive advantage. For

example, Amul supplies milk as well as dairy products like cheese, butter, etc.

1.3 Company Profile

Ma! The first word uttered by a child. Mothers Milk, the infants first food enriched

with all the vital ingredients-amino acids, vitamins, minerals, for growth and the most


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important of them all material love after the mother has provide the bay with nourishment

for as long as possible. She takes over. MOTHER DAIRY KOLKATA makes the little

infants first food an integral part of his/ her diet forever. Hence the Motheris Mother

DAIRY with the focus being the development of the rural milk producers.

Mother Dairy Calcutta-a Government of Bengals project, was started under operation

Flood II of National DARIY Development Board. It was set up initially to cater to the

demand of the Kolkatas urban agglomeration spread over the Kolkata Metropolitan area,

approximately 852 square Kms. Mother DAIRY is also reaching out to be consumers of

other districts. The commissioning of the DAIRY started In July 1978 and the first

Distribution Vehicle loaded with milk sachets rolled out of the DAIRY in the morning of

8th December 1978. Initially, the management of Mother DAIRY was looked after by the

National DAIRY development Board. On 24th March 1982, then honourable Chief

Minister Shri Jyoti Basu Dedicated MOTHER DAIRY CALUTTA to the rural milk

producers and urban milk consumers of West Bengal.

From then onwards, the story of Mother DAIRY is one of success after success. The

Growth of the DAIRY Continued unabated.

Mother DAIRY safeguards the interest of the rural milk producers by encouraging co-operative movement & marketing the surplus milk available from the villagers, thus

helping the milk producers to realize their own potential for organized endeavourer &

creation of more rural wealth in the shape of Anand Pattern as profounder by Dr V

Kurain, the Milk Man of India. In November 1996 the management of Mother DAIRY

was taken over by West Bengal Co-operative Milk Producers Federation Ltd.

It is selling Milk and Milk products Like Misti doi, Flavored Yoghurt, Plain Yoghurt,

Panner, Cow Ghee, and Packaged Drinking Water. Now it has started diversifying its

activity by selling the produce of other cooperative, unioins of West Bengal and other

states as Mother Dairy has a strong Marketing network.

In the year 2000, Mother Dairy Kolkata received ISO 9002 certification and in the year


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2001 Mother dairy received HACCP certification. Mother Dairy has also received

Environment Excellence Award(2000-2001). In the year October 2003 Mother dairy

Kolkata received ISO 9001:2000 and the certification agency is SGS India Pvt Ltd. A

renowned London based organization.

Consumer Awareness Program

Over the last few years these programs have gathered momentum and success, Under this

programs, school children are invited to the Dairy to give them the first hand experience

of the activities inside dairy to inculcate in them the healthy habit of drinking milk

everyday and to educate them on the importance of ensuring that the milk they drink is

pure and has been hygienically processed

Awards Given to Mother Dairy Kolkata

1987: National Productivity Award

2000: ISO Certification

2001: HACCP Certification

2002: First Environment Award

MOTHER DAIRY KOLKATA HERITAGE & TRADITION

MOTHER DAIRY KOLKATA has first introduced poly pouch in Eastern India

in year 1978.

MOTHER DAIRY KOLKATA has first introduced loose milk selling through

automatic coin operated booth first in Eastern India in the year 1980.

MOTHER DAIRY KOLKATA has first introduced the highly perishable cultured

milk product like misti doi and Yoghurts through pilfer proof cup under sealed

condition having 6 days self life under refrigeration breaking the tradition of

selling this product through earthen pot.


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MOTHER DAIRY KOLKATA has first introduced cultured milk products in

Eastern India in most of the trains especially in Rajdhani Express, Coromondal

express, Bombay Mail operation from Howrah and Sealdah.

MOTHER DAIRY KOLKATA has first received the National Productivity award

in the Eastern India dairy industry.

MOTHER DAIRY KOLKATA has first accredited the ISO 9001: 2000

Certification in the Eastern India dairy Industry.

MOTHER DAIRY KOLKATA has obtained the HACCP Certification in the

Eastern India dairy Industry.

MOTHER DAIRY KOLKATA has first received the Environmental Excellence

award in 2000-2001 in the Eastern India dairy industry.

MOTHER DAIRY KOLKATA

(At a glance)

Name : MOTHER DAIRY

Address : P.ODankuni Coal Complex

Dist- Hooghly, West Bengal

Pin No: 712310

Date of foundation : 8thDecember, 1978.

Total Area : 10 Hectares

Build Up Area : 8700 SQM (93612 SQFT)

Milk Market share( in West bengal) : 25%

Average Annual Turnover : 200 Crore


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(Product information)

Own Products : Cow Milk, Toned Milk, Double toned

Milk, Full Cream milk, Paneer, Misti

Doi, Plain Yoghurt, Flavored Yoghurt,

Rosogolla, Rajbhog & Packaged drinking

water.

Traded product : Ghee, Paneer.

Installed capacity (Milk) : 600000 Ltr/day.

Average Present Production : 400000 Ltr/day.

Installed Capacity (Misti doi & Yoghurt) : 2000 Kg/day.

Average Present Production : 2000 Kg/day

1.4 MISSION, VISION AND OBJECTIVE OF MOTHER DAIRY

KOLKATA

Mission: To sustain market leadership in the production and marketing of a variety of

liquid milk and milk products with assured quality at an affordable price, covering all

market segments and to maintain the growth, prosperity and unity of all internal and

external customers.

Vision: With full dedication and team work, MOTHER DAIY KOLKATA shall strive to

delight its internal and external customers through quality products and services.

Create an environment where stake holders feel happy and system will be eco-friendly.

Through innovation, continuous learning and consistent improvement achieve sustained

growth and excellence.


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POLICY & OBJECTIVE OF MOTHER DAIRY KOLKATA

Quality policy

Satisfy our customers with quality products and services.

Achieve and sustain growth and excellence.

Maintain a happy and fulfilling work environment.

Environment Policy

Be reactive and conscious about various Environment regulation.

Create and maintain a clean green belt in and around the dairy premises.

Always keep our environment safe, free from pollution and continual sustainable

development.

Quality Objective

Provide regular and timely supply of milk and milk products at convenient

distribution points under clean and hygienic condition for different segments of

consumers.

Provide remunerative returns to milk producers and other associations.

Promote innovations, continuous learning and improvement.

Social objective

Protect the rural marginal milk producing farmers from exploitation of profit

earning middleman.

Help them rear their cattle in hygienic condition there by increasing production of

Milk.

Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable

price throughout the year, right at their door step.


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ORGANIZATIONAL STRUCTURE


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2.1 ORGANIZATIONAL HIERARCHY

CGM

DGM

MANAGER

DY MANAGER

ASSISTANTMANAGER

OFFICER

SUPRITENDENT

SR. ASSISTANT

ASSISTANT

WORKER


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2.2 MANAGEMENT RELATIONSHIP

Designation Profile

Chairman Minister In charge Animal Resource

Development Dept. Govt. of W.B

Vice chairman Principal Secretary to the Govt. of W.B

Animal Resource Development Dept. Govt.

of W.B

Member Managing Director, WBCMPF Ltd.

Member Milk Commissioner Govt. of W.B

Member State Director National Dairy DevelopmentBoard Kolkata

Member-convener Chief General Manager, Mother Dairy

Kolkata.


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FUNCTIONAL AREAS


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3.1 FINANCE/ACCOUNTS DEPARTMENT

E.O MANAGER(1)

E.O.D.Y MANAGER(1)

E.O OFFICER

(3)

E.O SUPERINTENDENT

(8)

SENIOR ASSISTANT(5)


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TOTAL NO OF EMPLOYEES: 18

Net Profit for the financial years:

Year 2005-06 2006-07 2007-08 2008-09

Net profit (49657560) (140443042) 25458292 62428340

Graph representing the Net Profit of Organization

Net profit

-49657560

-140443042

25458292

62428340

-200000000

-150000000

-100000000

-50000000

0

50000000

100000000

2005-06 2006-07 2007-08 2008-09 Net profit

From the above the above graph it could be understood that the organization was in lossin the year 2005-06 & 2006-07. In further years the organization started earning profit

which has been described in the graph. The financial position of the organization is good

if we compare with the expenses. The cost of production is increasing year by year but

the profit is also increasing but not up to that extent.


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3.2 MARKETING DEPARTMENT:

Mother Dairy Kolkatawas set up to cater milk and milk products to the consumers of

Kolkata and its metropolitan areas about 852 sq. Km but subsequently in the year 2000

Mother dairy is marketing milk and milk product in the town of Burdwan, Durgapur,

Asansol, and in the Year 2002 Mother dairy is marketing milk and milk product at

Midnapur, Haldia, Bankura, Arambug, Ranaghut, Krishnanagar, Bangaon, Basirhat,

Diamond Harbour,Canning, Raychak etc, through its franchises.

Mother Dairy has set up 208 coin operated automatic self dispensing milk vending booths

(Mini Dairies) all over Kolkata and its metropolitan areas. It has 385 insulated Tank

outlets and about 385 polypack outlets. Beside this all the reputed hotels, Railways,

Airlines and Hospitals take milk and milk products from Mother dairy Kolkata.

Like any other agricultural commodity, there are regional and seasonal imbalances in the

production of milk also. In flush season and in milk surplus areas, when excess milk is

available, it is converted to Skim Milk Powder (SMP) and Butter Fat and then stored.

During the lean seasons and in milk deficit areas, when the availability of fresh milk is

low, to augment supply, SMP and Butter Fat are recombined without jeopardizing the


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goodness and nutritive value of milk.

After chilling, the milk from the silos undergoes clarification, homogenization and

pasteurization. Milk is passed through the clarifier at 40oCelsius so that all extraneous

matters are separated and removed from the milk.

Homogenization is carried out at a temperature of 70oCelsius. It is a process by which fat

globules in the milk, which have a natural size of 8-12 microns are broken down into

much smaller sizes of less than 2 microns and evenly distributed throughout the milk.

This reduces the tendency of fat to separate at and float the surface as a cream layer. This

process also makes the milk more easily digestible.

The milk is pasteurized at 80o Celsius to destroy pathogenic bacteria.

Finally, the milk is chilled to 4oCelsius and stored. The milk is now ready for travel to

thousands of waiting consumers.

Just prior to dispatch, the milk is glycol chilled to about 2o Celsius and either

automatically packed in polyethylene pouches or loaded in Mother Dairys fleet of

Insulated road milk tankers to be delivered at the various distribution points.

Milk and Milk Products:

Mother Dairys Milk is wholesome, Pure, healthy, and nutritious an important food for


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pregnant mothers, growing children, adolescents, adults, aged, and patients. It is fortified

with Vitamin A, antidote to night blindness. Fresh milk procured from milk producers is

pasteurized, clarified, Homogenized, processed, and packed and goes through stringent

quality checks.

Toned Milk Yoghurt.

Cow Milk

Full Cream Milk

Double Toned Milk

Misti Doi

Ghee

Paneer

Plain Yoghurt

Rosogolla & Rajbhog

Packaged Water

Pictures of the products

DOUBLE TONED MILKHomogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U

Per1000 ml ]

Composition[%] Consumer Price [Inclusive all taxes]

Milk Fat 1.5 Rs. 21.00/Ltr in Poly Pouch

Milk SNF 9.0 Rs. 10.50/Half Ltr in PolyPouch

NutritionalInformation[100 ml contains

approx.]

Added Vit A (I.U) 200

Proteins [g] 3.50

Carbohydrates [g] 4.70

Fat [gm] 1.5Calcium [mg] 124

Available in : Poly Pouches [ 1/2 lts, 1 lts ]

Energy : 46 K calories/100ml.

Suitable For :Preparation of Coffee/Tea, preparation ofPaneer. As it contains low fat. It is idealsource of nutrition for adults & aged peoplewho are weight conscious.


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COW MILK

Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per

1000 ml ]


Milk Fat 3.5 Rs. 24.00/Ltr in Poly PouchMilk SNF 8.5 Rs. 12.00/Half Ltr in Poly PouchNutritional

Information[100 ml contains

approx.]

Added Vit A (I.U) 200Proteins [g] 3.20

Carbohydrates [g] 4.50Fat [gm] 3.5

Calcium [mg] 117

Available in : Poly Pouches [ 1/2 lts ]

Energy : 62 K calories/100ml.

Suitable For :Preparation of different Bengali sweet

dishes, ideal for drinking purpose. [As it isrich- in flavored due to moderate fatcontent]


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TONED MILK Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per1000 ml ]

Composition

[%]Consumer Price [Inclusive all taxes]

Milk Fat 3.0

Milk SNF 8.5 No Pouch selling atpresent only in Loose milk

NutritionalInformation[100 ml contains

approx.]

Through Mini Dairy/IT/Non-Refrigerated Booth

Added Vit A (I.U) 200 Rs. 21.00/Ltr LooseProteins [g] 3.20 Rs. 10.50/Half Ltr LooseCarbohydrates [g] 4.50Fat [gm] 3.0Calcium [mg] 117

Available in : Loose [ Any Qty From Mini Dairy/InsulatedTank]

Energy : 56 K calories/100 ml.

Suitable For :

Preparation of Coffee/Tea, differentBengali Sweet Dishes, ideal for drinkingpurpose, also used for preparation ofPaneer. [ As it is rich-in flavour due tomoderate fat content.]

MISHTI DOI Delicious Mishti DoiComposition

[%] Consumer Price [Inclusive all taxes][100 gm contains

approx.]Rs 10.00/100 gms

Milk Fat 3.8Milk SNF 13.0

Sugar 18.0

Natural Caramel 0.2

Available in : 100 gms packs through Polysterine Cup

Energy : 158 K calories/100gms.

In a Nutshell

Relish the palatable and soothing taste of

Mishti Doi. Fortified with Vitamin A. It hasexcellent nutritional profile and food value.

It helps in digestion and keeps one'ssystem cool. Mother Dairy Mishti Doi ispacked and shelled in pilfer proof cups inautomatic packaging machine ensuring

right quality and quantity.


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PLAIN YOGHURT A Traditional Yoghurt


[100 gm contains



Available in : 100 gms packs through Polystyrene Cup


In a Nutshell

The secret of longer life of the hill tribes of

Bulgaria for centuries was a daily diet ofyoghurt. Yoghurt improves appetite, vitalityand vigour, cures intestinal disorder andcontrols cholesterol besides having

numerous other beneficial effects.

FLAVORED YOGHURT A Traditional Sweet YoghurtComposition [%] Consumer Price [Inclusive all taxes][100 gm contains



Sugar 13.0Permitted Synthetic

Colors [ Food grade ]Added FlovoursAvailable in : 100 gms packs through Polystyrene Cup


In a Nutshell

Mother Dairy Flavoured Yoghurt is a treatto your taste bud and is available in

different delicious flavours like Vanilla,Pineapple, GreenMango, Chocolate,

Strawberryand Pista. It posses all thebenefits of plain yoghurt. FlavouredYoghurt is also fortified with Vitamin A.


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PANEER Made from fresh pure milk, vacuum packed for extra fresheness

Compositionper

100

gmsConsumer Price

Milk Solid Rs 22.00/100 gmsCitric Acid Rs 50.00/250 gms

Common SaltNutritional

Information[100 gm contains

approx.]

Milk Fat [gm] 25

Milk Protein [gm] 25

Water [%] 50

Calcium [mg] 600Vitamin A [micro] 300

Available in : 100 gms / 250 gms / 1 Kg [against Order]


Suitable For : Direct consumption & for preparation ofdifferent delicious dishes.

COW GHEE Prepared from fresh Cow Milk having cooked flavourAvailable in [gms] Consumer Price [Inclusive all taxes]

100 - Rs 30.00

200 - Rs 56.00

500 - Rs 125.00 1Kg---Rs.230.00


Suitable For : Direct consumption & for preparation ofdifferent delicious dishes.

In a Nutshell

Cow Ghee is the richest source of Milk Fat of

all Indian Dairy Products. It contains Fatsoluble Vitamins A, D, E & K that provideenergy. Its pleasing flavour, aroma andpalatability make it a desirable dietarycomponent as well as valuable cooking Fat.

From time immemorial Ghee is considered asa source of nutrient in Indian Diet.


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PACKAGED DRINKING WATER ISI Marked Packaged Drinking WaterAvailable in [Ltr] Consumer Price [Inclusive all taxes]

1/2 - Rs 8.001 - Rs 12.002 - Rs 20.00

5 - Rs 40.00

20 [jar] - Rs 60.00

*Note[jar is returnable, Jar can be retained againstSecurity Deposit ]

In a Nutshell

It is produced using reversedosmosis technology with multiplebarrier filtration, ozonisation &

ultra violet treatment under totalaseptic environment. It is free fromharmful chemical, bacteria & Virus.

Sales for the Year ending:

Year 2005-06 2006-07 2007-08 2008-09

Sales 1833108057 2080224425 2207237525 2298407148


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Graph representing the Sales

Sales

1833108057

20802244252207237525

2298407148

0

500000000

1000000000

1500000000

2000000000

2500000000

2005-06 2006-07 2007-08 2008-09

Sales

From the above Graph and datas it could be understood that the sales have increased

every year which has converted the loss into profit.

COMPETITORS

Amul

Metro dairy

Red cow

Others


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Despite of being the first in the industry, and having the first mover advantage and thebrand name, the sale has fallen down incredibly due to competitors like Amul ,Metrodairy , Red Cow and others. There is a need to revamp the company and position it allover again in the mind of the consumers. In doing so firstly the grievances of thedistributors and the retailers were required to be solved in order to encourage them forpush sales.The company will be able to understand its strengths, weakness, opportunities and

threats. The survey report submitted by me will assist the company to take right decisions

to increase the turnover and market share.

PRICE EFFECTIVE FROM 2009

Margin (per

ltrs) : Sl.No

Product Distribut

ors Price

Retailers

Price

MRP

1 Double Toned Milk 19.65 20.00 21.00

2 Toned Milk 20.75 21.10 22.00

3 Full Cream Milk 25.45 25.80 27.00

4 Cow Milk 22.65 23.00 24.00

5 Skimmed Milk 17.65 18.00 19.00

Margin (per100 gms) :Sl.No

Product Distributors

Price

Retailers

Price

MRP

1 Mishti Doi 6.50 7.20 8.002 Plain Yoghurt 6.50 7.20 8.00

3 FavouredYoghurta) Vanillab) Green Mangoc) Chocolated) Pineapple

6.50 7.20 8.00

4 Paneer 17.50 18.50 20.00


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CURRENT SCENARIO

Mother dairy has a market share of around 33 % in the branded sector in West Bengal

where it sells 3.4 lakh litres of milk daily on an average and undertakes its marketing

operations through around 51 distributors and around 600 retailers in Kolkata itself. It has

a huge advantage over its competitors as it is the only player when it comes to sale of

loose milk through token. Before the entrance of competitors like Amul ,sale of loose

milk through Mother Dairy booths was around 35 % of the entire sale in branded segment

, when Mother dairy was the only player in the market. However since last five years the

sale is continuously declining and presently it is just 8-9 %.


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Advertisement and Promotion by Mother Dairy

On the marketing front, Mother Dairy says it's trying to take its product campaigns and

Communications to a higher platform. For instance, in the case of milk, the campaigns do

not talk about the obvious benefits - milk is good for health, it has calcium and so on - but

rather it targets children and are created around ideas such as "The country needs you,

grow faster".

As far as products such as butter, cheese and ice creams go, the campaigns have been

created around "taste". For butter again, the focus is on children. "Amul butter may be

selling the most, but the advertising and promotions are almost always targeted at adults,"

points out an analyst citing Amul's popular Utterly-Butterly campaigns.

Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by

kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a

sturdy jovial cow (a cartoon character) has been made its brand ambassador.

While Mother Dairy has been carrying out school programmes - games and activities

involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and

Kolkata as well. It also runs a gaming website on the character to attract children. Equity


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and empathy are being built for the brand, the values for which it stands, and the various

other Mother Dairy products, which draw their core values from Mother Dairy milk.

It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail

activity:

"Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited

for a photo op - dressed as superheros - through Polaroid cameras; and the framed

photograph was presented to them. The activity was carried out in about 150 outlets in

Delhi and Mumbai, with about 20,000-25,000 snaps being taken.

It claims that the exercise resulted in better ties with retailers. A positive response made

Mother Dairy to repeat it in Kolkata as well. Clearly, Mother Dairy has aggressive plans.

But, strong regional brands and other co-operatives will continue to give it tough

competition. It will not be a cakewalk anymore.


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3.3 PRODUCTION DEPARTMENT

PROCESS OF MILK PRODUCTION

1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy

co-operatives and producer institutions. Milk is received from farmer cooperatives

through insulated tankers at 2C temperature in order to retain its freshness.

GERNERAL MANAGER

DY MGR (PROD&MFG.) DY MGR (ULITIES) ASSTT.MGR (SAFETY,HEALTHY &

ENVIROMENT)

SR MANAGER (MFG.)

SR OFFICER (ELECT.)SR OFFICER(Thermal) SR OFFICER

(AUTOMATION)

PRODUCT UNIT CO-ORDINATOR

SHOP FLOOR ENGINEERS & WORKERS


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2) Milk distribution: -Tankers in the morning and in the evening bring in milk from the

regional collection centers. After collection the same tankers are utilized for the delivery

of the processed milk to the distributors. Mother Dairy has about 51 Distributors in the

city of Kolkata. Each of these LADs(Local area distributor ) place their demand by

raising an invoice one day in advance. The demand is also calculated using the

Calendar Scheme, in this depending on the pre-calculated seasonal demands the outlets

place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are

provided with a buffer stock of 500 litres each day so that they can be mobilized to cater

the demand in an area. To coordinate its operations all the tankers are equipped withHAM radios.

Distribution Channels:

a) Token Distribution: Also, termed as Lohe ki bhains (metal buffalo), is an automated

milk vending machine.

b) Distributors: The packaged milk is distributed via the distributor network throughout

the city.


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Processing

At mother dairy, the processing of milk is done by process automation whereby state of

the art microprocessor technology is adopted to integrate and completely automate all

functions of the milk processing areas to ensure high product quality/reliability and

safety. There are four ways of milk processing

Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles

that are invisible to the naked eye.

Secondly, Standardisation which help to maintain uniformity by raising or lowering its

fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to

consumers as per prescribed PFA norms.

Thirdly, it is Homogenization which improves palatability of milk and

Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus

making it safe for consumption.

Quality Control

Stringent quality control methodologies are employed in Mother Dairy.

The milk is tested for adulterations and quality at the time of collection from the

farmers.

The Milk that comes from the collection points to the Mother Dairy plant is

ensured to have a temperature of not more than 4C and is subjected to 15 product

and quality checks.

The Milk quality is checked repeatedly after each processing phase and the

temperature is judiciously maintained less than 4C always.

Before the milk leaves the plant for the delivery/distribution outlets the milk is

tested again.

The temperature of milk in the delivery trucks is always maintained less than 4C.

All the trucks that deliver milk have specified guidelines to bring back 100 litres

of milk after distribution. This is done in order to test the delivered milk and to

ensure that the tankers are not adulterated during distribution.


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Since all the employed processing procedures are automated, no contamination by

human hands takes place.

To ensure milk freshness the collection and distribution points are always chosen

such that the travel time between them is always less than 36 hours.

Out of the total production about 9% goes directly to the institutions ,23% is the

loose token milk and the rest is distributed through LADs.

Recently State Govt. faces crisis about the production of Mother Dairy. Though there is

the demand of this branded dairy product, the production declines it rate. The cost of

production is increases day by day but State Govt. oppose to increasing of price rate.

Thus for prevent their loss they have to decrease their production.To make a decision

Animal-Wealth Minister Mr. Nure Alam Chowdhury will meet with CM very soon. In

1996 State Govt. took the authority of Mother Dairy from National Dairy Development

Board. The daily demand of milk in this State is 11 lakhs litre; Mother Dairy had produce

3, 80,000 litres till some days ago but now they are producing 3, 50,000 lire. The

decreasing in production brings other problems like machinery and working problems.

Where the other Pvt. Dairy product increases their selling price, Mother Dairy cant do

this. As because they could not increase their selling price, they have to decrease their

production volume. We hope for the right step from our Govt. to handle this problem and

a fruitful solution by which this Brand group gets their profit and common people also

get their needy product at reasonable cost.


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3.4 HR DEPARTMENT

Total no of Employees: 18

HR Functions & Responsibilities

The function of Hr department starts with recruitment and ends with retirement.

Manpower planning

Recruitment & placement

Wages & Salary

Welfare activities

HR HEAD

MANAGER

D Y MANAGER

OFFICERS

SUPERVISORS


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Safety of the employees

Career development

Training & development Maintaining Industrial relation

Time office management

Disciplinary Process


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SWOT ANALYSIS


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4.1

STRENGTH

Low operational costs

Presence of established distribution networks in both urban and rural areas

Presence of well-known brands in FMCG sector

Financial position is very sound.

The company is equipped with wide range of products.

It has good research and development facilities.

Good infrastructural facilities.

WEAKNESS

Low exports levels

"Me-too" products, which illegally mimic the labels of the established brands.These products narrow the scope of FMCG products in rural and semi-urban

market.

Unions

Lack of work culture in terms of punctuality and meaningful discussions.

Lack of support from the top management.

Lack of quick decision ability.

Dependency on Govt. for taking decision.


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4.2

OPPORTUNITIES

Untapped rural market

Rising income levels, i.e. increase in purchasing power of consumers

Large domestic market- a population of over one billion.

Export potential

High consumer goods spending

Scope of increasing the sales by the mean of advertisement and promotion.

Huge availability of Funds and Reserves.

THREATS

Mother dairy has got stiff competition from competitors.

Major threats from political condition of the nation and changing of rules and

regulation. Changes in economic condition, Inflation and Deflation.


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4.3 Problem Identification and Solution in a specific area:

RESEARCH REPORT ON:

Consumers information seeking behavior while Purchasing Milk in Kolkata

Objective

Primary: To analyze the factors which influence the purchase of Milk and milk product inKolkata.

HYPOTHESIS :

Null Hypothesis (H0): The Factors does not influence the buying behavior of consumer whilepurchasing Milk and Milk product.

Alternative Hypothesis (HA): The Factors does influence the buying behavior of consumerwhile purchasing Milk and Milk product.

RESEARCH OBJECTIVE:

To identify the issues related to Mother Diary retailers.

To study Mother Dairy strategy vis--vis competitors.

To study the distribution channel in the retail chain of Mother

Diary.

To cover up SOME PARTS OF Howrah district and get theretailers as well as consumers feedback.

To keep track of the daily sales of the retailer in the above

mentioned region.


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To add up new out retailers in this area.

To find out short term problem in the region that can be sorted out.

Lets see how can these task be managed-

Suggesting viable recommendations to the area, the concept of consumption

may be understood to have either of two related meanings, both involving the

notion of an objects disappearance or transformation. In economic terms,consumption of an object may be considered to have occurred when it has been

removed from the market by some exchange mechanism, such as when a transfer

takes place between a seller and a buyer of a good. The more commonly

understood meaning of consumption is it physical meaning having been taken. It

is this latter meaning which applies in this characterization methodology. Some

other important definitions are:

Dairy Product:A dairy product shall be defined as milk or any product derivedfrom milk. With in the general class of dairy foods, different products will bedifferentiated by their physical composition or from, or where the market orconsumer differentiates them.

Consumption pattern:The combination of products consumed the frequency oftheir consumption and the quantities consumed.

Mode of consumption:The manner in which the dairy product is consumed ofused, e.g. milk may be taken directly or in tea and either cold or warm; butter may be

used as a cooking fat, an edible spread, or a cosmetic.Regulated Market : A market in which government exercises control, for

instance through price regulation, mandatory standards of hygiene, location-specificmarketing licenses, etc.

Unregulated Market :is here defined as one which effectively operates beyondthe control of governments and is for all practical purposes self-monitored, such as indairy markets dominated by over-the-fence sales to neighbors.

Strategies Adopted

Directly questioned retailers and distributors.

Interviewed consumer and asked about there test and preference.

Checked on the commotion provided by competitors.


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Personally visited prospective retailers .

Made analyses of the competitors product.

METHOD IN SHORT

Methodologically, marketing research uses the following types of research designs:Based on questioning:

Qualitative marketing research: Generally used for exploratory

purposes-small number of respondents- not generalizable to the whole

population- statistical significance and confidence not calculated-examples include focus groups, in- depth interviews, and projective

techniques.

Quantitative marketing research:Generally used to draw conclusions-

tests a specific hypothesis- uses random sampling techniques so as to infer

from the sample to the population- involves a large number of

respondents- examples include surveys and questionnaires. Techniques

include choice modeling, maximum difference preference scaling, and

covariance analysis.

Bases on observations: Ethnographic studies: By nature qualitative, the researcher observes the

social phenomena in their natural setting- observations can occur cross

sectionally( observation made at one time) or longitudinally

(observations occur over several time period)-examples include product-

use analysis and computer cookie traces. See also ethnography and

observational techniques.

Experimental techniques: By nature quantitative, the researcher creates a

quasi- artificial environment to try to control spurious factors, then

manipulates at least one of the variables- examples include purchase

laboratories and test markets.

Researchers often use more than one research design. They may start with secondaryresearch to get background information, then conduct a focus group( qualitative researchdesign) to explore the issues. Finally they might do a full nation-wide survey(quantitative research design) in order to devise specific recommendations for the client.


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PRIMARY DATA

Primary data was directly collected from retailers and consumers though a questionnaire.

SECONDARY DATA

The secondary source of all the daily sales record of all distributers.

CONSUMER BEHAVIOR

Consumer behavior is the study of when, why, how, and where people do or do not buyproduct. It blends elements from psychology, sociology, social anthropology. It attemptsto understand the buyer decision making process, both individually and in groups. Itsstudies characteristics of individual consumers such as demographics and behavioralvariables in an attempt to understand peoples want. It also tries to asses influences on theconsumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior, with the customerplaying the three distinct rolls of users, payer and buyer. Relationship marketing is an

influential asset for customer behavior analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the reaffirmation of the importanceof the customer or buyer. A greater importance is also placed on consumer retention,customer relationship management, personalization, customization and one-to-onemarketing. Social functions can be categorized into social choice and welfare function.Each method for vote counting is assumed as a social function but if Arrows possibilitytheorem is used for a social function, social welfare function is achieved. Somespecifications of the social functions are decisiveness, neutrality, anonymity,monotonicity, unanimity, homogeneity and weak and strong pare to optimality. No socialchoice function meets these requirements in an ordinal scale simultaneously. The mostimportant characteristics of social functions are identification so the interactive effect of

alternatives and creating a logical relation with the ranks. Marketing provides services inorder to satisfy customers. With that in min, the productive system is considered from itsbeginning at the production level, to the end of the cycle.

Keeping all these things in mind I have concentrated over what the dealers , retailers andcustomers have said.


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DATA ANALYSIS AND INTERPRETATION

For Data collection, some points have been focused from the people with whom thematters were discussed. I have interpreted these points in graphical presentation andmade some analysis over the Data collected. These are as follows-

A. Satisfaction Level;1) Poor- 48%2) Average- 38%

3) Good- 10%4) Very Good-3%5) Excellent- 1%


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Analysis : According to the graph , the satisfaction level of user of Mother Dairy Milk isnot so much hopeful for the company . It shows a decreasing type of satisfactory level forthis kind of feedback company should be concerned about their quality control , supplyand distribution channel , dealer and retailers demand etc. to hold their market becausecustomer satisfaction is the only way to sustain market status .

B. Satisfaction level with their regularity maintained in supply1. Pour15%2. Average- 60%3. Good- 20%4. Very good- 3%5. Excellent- 2%


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Analysis : In case of supply, mother dairy has done a good job in areas nearbyproduction plant. But in far distance the supply chain though regular still dealers andretailers are not to much happy because the source distributor is not able to meetemergency demand and sometimes regular supply is also interrupted due to randomreasons.

C. Inspection Regularity and Response Satisfaction

1. No visit- 2%2. Rarely visited-10%3. Average Visit- 45%4. Regular Visit- 30%5. Regular visit and quick action- 13%


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Analysis: Inspection from Mother Diaryis satisfactory near the Kolkata region and afterwards in between places away from plant the inspection is not too much regular and insome cases its rare and the response to the problem is not also satisfactory. The quickresponse to solve the problem overall is not regular, so the problems of dealers persist.

Inspection from problem solving unit is a big demand and its points out the rootcause of dissatisfaction.


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D. Satisfaction with the commission rate-1. Not at all satisfied- 35%2. Just satisfied- 50%3. Satisfied- 12%4. Happy with commission-3%

Analysis: Commission is a big deal for any kind of fast moving goods sale. In everysteps of chain, dealers or retailers are heavily concerned about this. According to ourresearch most of the people related to it, are deeply irritated with the marginalcommission rate of the milk products of mother Dairy in comparison to other companiesin the market like Amul, Metro etc. They keep a big margin. The yearly offer for the endsupplier are lesser than the other companies. In some cases it is near about absent. So olddealers and suppliers due to brand loyalty try to keep themselves happy with less


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commission as they have big market. But new users are not at all happy with that. Thelinemen deserve and thus expects yearly bonus and other advantages, which are notpossible for the dealers to meet up their demand as their own margin is very less.

E.Demand of Products other than Milk1. Curd45%2. Ice cream20%3. Water10%4. Butter15%5. Ghee10%


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Analysis: Market demands milk of course, but in the Nadia and some areas of 24pgs (N) district milk is the only supply from Mother Dairy, but the market does havedifferent other products apart from milk too. Other companies re aware of that and theyare trying to capture the side market. So if company doesnt consider this demand theywill lose a good market of these products. Calcutta Mother Dairy is supplying milk aswell as other products in Kolkata region but not concerned about this in the areas where Ihave conducted my project.

F. Percentage of customer loss in 2010 due to competition in comparison with 2009(information from 5 dealers)-

1. 5% - 20% ~ 5%2. 20% - 35% ~ 40%3. 35% - 50% ~ 30%4. 50%65% ~ 15%5. More than 65% ~ 10%


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Analysis:Its clearfrom thesurvey thatduring lastone year,due to high

scale competition the demand for Mother Dairy milk has been reduced. There are manyreasons for that which have been stated in the other analysis and afterwards in the maincompact report. For this, customers have diverted their choice to other brands. Most ofthe dealers have lost customer in minimum 20% - 35% range. Some serious loss ofmarket have been reported even in nearby area of the distribution source. More than 65%customer loss is also there. Below, the reduction has been shown in curve to make thesituation more clear.


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G.Longevity of Milk of other companies in comparison with Mother Diary in normaltemperature.

1. 1 to 2 hours 10%2. 2 to 3 hours 25%

3. 3 to 5 hours 35%4. 5 to 7 hours 20%5. More than 7 hours 10%


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Analysis: Mother diary milk product longevity is less than other company milkproduct longevity because , Mother Diary milk contains less milk powder than that ofother companies . And this leads to less sustainability than other. If properly notpreserved, milk is spoiled .

So, Mother Diary milk longevity time is lesser than other companies milk productlongevity.

H. Order frequency change in last one year among 5 dealers-

N.B- All readings are in percentage.


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Analysis: Order Frequency of no. of crates of milk from retailers have been lessened bythe time of 2009 and 2010 in almost 90% cases. According to the dealers comments, itsfound that they have been compelled to cut their order from company short due lessdemand from retailers. It has happened due to entry of some other strong brands. Teastalls are holding a good market of milk. As other brands have some tea friendly milktype, they are now in demand.

I. Satisfaction level about clarity of payment and other calculations-

1. Poor- 15%2. Average- 30%

3. Fair- 45%4. Very Good- 7%5. Happy enough -3%


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Analysis: We have got from the research that clarity of payment and clarity of othercalculations have varied from person to persons. With the distributor some dealers havegood terms in relation to this matter and thus have no complaints. But in some cases wehave got some different pictures too which is hampering the business of the company. Itsa matter of concern.

This should be taken care of by the company.

J. Dealer meeting reduction.1. Year 1996-1998->5%2. Year 1999-2001->10%3. Year 2002-2004->12%4. Year 2005-2007->20%5. Year 2008-2010->53%


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ANALYSIS:- From the 2 years frequency stat. data, we can observe that theregular Meeting in between administration & dealers used to take place in regularinterval during 1996 around years, but the rate has been slowly reduced afterwards &during 2008-2010 time period there is a steep rise in reduction rate, which is a bigconcern for dealers & retailers. Their demand is unheard & overlooked by administrativepersonnel.

K. According to you which is the main reason for loosing the market share ofmother dairy milk product at Howrah district.

1. Quality of product decreasing day by day 45%.2. Competitors (i.e. Amul, Metro Dairy, Red cow etc) improve day by day 5%.3. Low profit margin comparison with competitors 15%.4. No promotional activity comparison with competitors 30%.5. Poor marketing strategy 5%.


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L. Do you have your own transport facility to deliver the products?

a. Yes 30%.b. No 70%.


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ANALYSIS : Clearly its a tough job for the dealers and others in the chain to handle thesmooth flow of distribution if they dont have their own vehicle. But in region lacking ofproper transport system in between dealers and distributor is hampering the task ofreaching milk timely and safely.

M. Overall market grip of mother dairy along with other companies in that area-a. Mother dairy-20%b. Amul-40%

c. Metro dairy-25%d. Red cow-10%e.Others-5%


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Chi-Square Test:

Factors Observed

Values(O)

Expected

Values(E)

(O-E)

(O-E)

E

Taste

316 297 361 1.215488

Quality

305 297 64 0.215488

Health &

Hygiene 321 297 576 1.939394

Packaging

310 297 169 0.569024

Availability

306 297 81 0.272727

Price

286 297 121 0.407407

Density

236 297 3721 12.52862

(O-E)2

E

17.14815

Level of significance:5%

Degree of freedom:6-1 = 5

2tab is 11.143

Calculations:

2 =(O-E)2

E

= 17.14815


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Conclusion:

Since, calculated value of 2=17.14815 is greater than the tabulated value, H0isrejected.HAis accepted. i.e., The Factors does influence the buying behavior of consumer

while purchasing Milk and Milk product.

Ranking Method

Data Total Ranking

Sum of Taste 316 6

Sum of Quality 305 3

Sum of Health &Hygiene 321 7

Sum of Packaging 310 5

Sum of Availability 306 4

Sum of Price 286 2

Sum of Density 236 1


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Sum of TasteSum of

Quality Sum of

Health Sum of

Packaging Sum of

Availibil ty Sum of PriceSum of

Density

Total

0

50

100

150

200

250

300

350

Total

Sum of Taste

Sum of Quality

Sum of Health

Sum of Packag

Sum of Availib

Sum of Price

Sum of Density

Data

According to this method we can say that Density influences customers the most followed byPrice, Quality, Availability, Packaging, Taste and lastly Health and Hygiene.


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Distribution of respondents based on Usage

Milk usage Tea & coffee Drinking Other usage Tea & coffee

+ Drinking

Grand Total

NOS. 20 40 5 35 100


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Limitations:

Sample size of 100 is insignificant compared to the large Mother dairy consumers present

Time and money constraint

We are under the assumption that whatever information is given by the respondent is true

This study is based on specific geographical locations

Suggestion:

Mother dairy is the leading brand because of the features provided by it and thecompetitive pricing. Also it is the most popular brand as per our research.

Density of the milk should be improved

Price as compared to other competitive brands is very low, hence to increase the profitmargin the price can be increased.

Availability should be increased because the demand is high. Taste can be improved.

Further research:

Our further research can be done on finding the reasons how the competitors (Amul,Metro) has managed to increase their market share.

We can understand what is lacking in the companies Strategies.

CONCLUSION

The final outcome of the project is that the parameters which the sale of Mother Dairyare price,density,packaging, quality,taste and flavor, health and hygiene, irregular supplyand lasting problem of Milk . Milk market is totally unpredictable market and theorganization should be over- cautious of any complaints that come into milk as it includesthe sentiments of a mother for her kid and she would not prefer to give anything to herkid which she is not satisfied.

Company should not take risk with the quality for sure. The lesson they shouldremember the only principle of business that the ultimate process of gaining profit is toplease the customer with the best effort the company can take. I render this solution to thecompany. If the problem in system become critical too much critical the perfect and

emergency recovery can solve the problem.


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SUGGESTION

As the Research report says-

In Retailer & Dealers view, some of the problems (Thin quality, milk getsspoiled (specially DTM, leakage problem, less replacement facility, supply chain

problem, commission problem, pasting & printing problems, Complete absence of

advertisement etc.) are mainly important.

They think the marketing officer or marketing executive and the administrative

system have become old , the system is not able to cope up with the standard of

todays other new companies in market like Amul. They think some thing is suspiciously happening (Product cheating) in the supply

chain process.

They feel customer relationship should be better. Neither it will declaim.

The marketing officer or marketing executive dont visit for inspection regularlyand if visited ,no further results are produced. So they should visit the retailer,

dealer, and different booths regularly and take quick steps to solve the problems.

All the retailer, dealer want advertisement & promotion for people awareness

where other brands are capturing huge market by promotion. Even new

companies like Red Cow has got market demand due to huge promotion. Some

dealers advised to provide some scheme or gift for linemen in a year. Other

companies have taken this step. Some of the retailer or dealer wants to be authorization but they dont get

opportunity. Some of them has huge potentiality to capture market but they are

not provided co-operation from the company. Company is still dealing with long

supply chain with single line distribution

Some retailer dont get much supply but there is market of Mother Dairy.


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Insufficient supply.

According to sources its reported that 100% replacement is sent to dealers orretailers but for unknown reason they dont get more than 50% of it. So

investigation is needed in distribution and supply chain level. Chalan/voucher/sheet must be provided in hand by the driver and relation in terms

of financial as well as behavioural should be fair and clean. It must be ordered if

found absent

Direct complaint telephone number should be provided for them and quick

response is necessary

All the subsequent notes must be taken care of soon to run in same pace with

other Giant companies.

I can suggest the company to convert every NO to YES and their complaint should

be taken care of. This is the gist of the every problem I have got from the people overwhom I have run my research. Solving these, Market will be a bit more to companysside.


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OBSERVATIONS, SUGGESTIONS & CONCLUSION


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5.1 MAJOR FINDINGS

One of the most important finding is that there was lack of skilled people.

The authority to take decision lies in the hand of Government which leads to take

lots of time in decision making.

There is no proper utilization of fund.

Scope of expansion is high but the steps are yet to be taken.

Prices of the milk and milk products were low as compared to the competitors.

People are unaware of the product and the services provided by the organization.

Unionization is there in each and every part of West Bengal and Mother Dairy

Kolkata is affected by union; which some becomes a threat for the development

process and sometime act as remedy for the workers.


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5.2 SUGGESTIONS

The recommendations for the company for further growth and profit are as follows:

Mother dairy should come up with schemes for customers along with retailers as

it would be a real boost to the sales and also it will help the company to get back

its lost customers

During the survey it was found that many of the retailers were uninterested

because they were concerned about the storage of milk. Instead of refrigerators if

dry ice boxes can be supplied free of cost, sale would be increased. Also it would

be economical and convenient. Later, if the retailer drops out, the box can be

collected back. It was seen that the price of the largest selling variety of Mother dairy which is

cow milk is Rs 24/ltr , and the competitor product of Amul is priced at Rs 25/ltr.

Thus the price can be increased and thereby margin of the retailers can be

increased

Price is not a major concern for the consumers when it comes to a necessity like

milk so the price can be increased by a rupee or two and the quality can be

improved

Mother Dairy is ISO and HACCP certified. The consumers should be explained

about it through advertisements in order to make them aware

If MD can do certain promotions as its competitor AMUL does, then it can attract

sales. Promotion with the help of boards, hoardings etc. and also it can advertise

in radio

It was found during survey that Mother dairy milk gets spoiled quickly, thus a

preservative known as costic which is used by Amul can be applied to produce

milk.

In order to improve and maintain quality, total quality management measuresshould be appointed. It was seen that due to lack of fixed percentage of raw milkmixed, the quality gets hampered and remain unsteady. The extra milk procuredshould be used for production of milk products which are in short supply and raw


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CONCLUSION

It could be said that the organization has huge scope of expansion which can help

them to increase there business activities throughout the State.

It is a Government organization so it cant always work for generating profit only; it

has to look at the society also. And this is the only reason the prices of the milk and

milk products are not increased.


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Annexure

(Financial statements)

Questionnaire

Bibliography


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Balance sheet as on 31stMarch 2009

Particulars Schedule 31.03.09 31.03.09 31.03.08 31.03.08

Sources of Fund

Reserves & surplus I 586072609 523644268

Loans II 107954860 21804039

694027469 738448307

Application of fund

Fixed asset III 65177477 66650252

Current Asset, Loan &

Adv.

1. Inventories IV 678831846 782504018

2. Sundry Debtors 6583951 6820515

3. Cash & Bank Bal. V 177093871 27445898

4.

Other CurrentAssets

VI 15092751 4555950

5. Loans & Adv. VII 36961569 30208978

914563988 851535359

Less: Current Liabilities

& Provision

1. Current liabilities VII 257435498 153527028

2. Provision 28278498 26210276

285713996 179737304

Net current Asset 628849992 671798055

694027469 738448307


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Profit & loss A/c For the year ending 31stmarch 2009

Particulars 31.03.09 31.03.09 31.03.08 31.03.08

INCOME

Sales 2403797511 2207237525

Other income 27016236 38839065

(Increase)/Decrease in stock of

finished goods & purchased

stock

(258466) 377623

2430555281 2248454213

EXPENDITURE

Raw material consumed 744305218 626360406

Milk commodities & other 1133679471 1126685043

Other purchases 34929333 36179464

1912914022 1789224913

Operating Expenses 440370631 403695092

Period adjustment 752543 856329

Depreciation 7992787 8970945

Interest 6096957 18248642

2368126940 2220995921

Profit/loss for the year 62428341 25458292

Bal. Brought from the previous

year

(182971342) (208429634)

Bal. Carried from the previous

year

(120543001) (182971342)


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CONSUMER FEEDBACK FORM

CONSUMER PROFILE:-

1. NAME :2. ADDRESS :3. PHONE NO (OPTIONAL) :4. AGE (YRS) :5. OCCUPATION :

CONSUMPTION LEVEL AND AVAILABILITY:-

1. MILK CONSUMPTION PER DAY: 250ML/500ML/1L/MORE THAN 1L2. FREQUENCY OF REQUIREMENT: EVERYDAY/EVERY ALTERNATE DAY/ONCE

OR TWICE IN A WEEK3. HAS YOUR FAMILY CONSUMPTION INCREASED/DECREASED OVER THE PAST FEW

MONTHS? YES/NO4. DO YOU GET MD MILK FROM : AUTHORISED OUTLET/FREE OUTLET/HOME

DELIVERY/OTHERS

BRAND PREFERENCE:-

1. HOW DO YOU CONSIDER MD MILK? VERYGOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

2. PRICE OF MD MILK TO YOU :HIGH/MODERATE/COMPETITIVE/AVERAGE

3. TASTE AND FLAVOUR MD MILK TO YOU:PLEASANT/STALE/SOURING/OTHERS(IF ANY SPECIFY)

4. DENSITY OF MD MILK TO YOU: VERYGOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

5. SHELL LIFE OF MD MILK TO YOU: VERYGOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

6. USAGE OF MD MILK IN YOUR FAMILY FOR: TEA&COFEE/DRINKING/AS OTHERSUPPLEMENT

7. PARAMETERS OF JUDGEMENT OF THE PRODUCT:TASTE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

QUALITY: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

HEALTH & HYGIENE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

PACKAGING: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY

AVAILABILITY: VERY GOOD/GOOD/SATISFACTORY/NOT

SATISFACTORY

OTHERS (IF ANY SPECIFY)

8. DO YOU PREFER OTHER BRANDS: AMUL/METRO/OTHERS (IF ANY


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SPECIFY)

9. FACTORS THAT INFLUENCE YOU TOWARDS OTHER BRAND:

TASTE/QUALITY/HEALTH&HYGIENE/PACKAGING/AVAILABILITY/OTHERS (IF ANY

SPECIFY)

10. DO YOU USE OTHER MD PRODUCTS: MISHTI DOI/YOGURT/PANEER/GHEE

11. ANY THREE CHANGES THAT YOU WOULD LIKE IN MD PRODUCTS.

COMMENTS (IF ANY):

SIGNATURE OF THE INTERVIEWER:

BIBLIOGRAPHY

www.motherdairy.com

Mother Dairy Kolkata

Company Brochure

Business Research methods By Donald R Cooper and Pamela S

Schindler


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